Done Deal: Rolls-Royce Completes Acquisition Of Rolls-Royce Power Systems
Rolls-Royce has announced the completion of its acquisition of Rolls-Royce Power Systems (RRPS). This follows the announcement on March 7, 2014 that the Board of Management of Daimler AG had decided to exercise the put option relating to its 50% equity interest in RRPS and the announcement on April 16, 2014 that Rolls-Royce and Daimler had agreed on a fair market valuation for the shareholding of € 2.43 billion.
“We are pleased to welcome Rolls-Royce Power Systems fully into Rolls-Royce,” John Rishton, CEO of Rolls-Royce said. “The business adds scale and capability to our reciprocating engines portfolio. It has outstanding technology, operates in long term growth markets and has proved a valuable addition to our Marine & Industrial Power Systems division (MIPS).”
RRPS, which previously operated as Tognum AG, manufactures reciprocating engines, propulsion and distributed energy systems. It is headquartered in Friedrichshafen, Germany and employs about 11,000 people.
Ulrich Dohle, CEO of Rolls-Royce Power Systems said: “With our well-known MTU high-speed engines, MTU Onsite Energy distributed energy systems, Bergen medium-speed engines and L’Orange fuel-injection systems, we are proud that we are now a full member of the Rolls-Royce family and look forward to contributing to its success.”
With the deal, Daimler will remain a partner in the development and supply of medium and heavy-duty diesel engines in the power range below 500 kW. MTU markets the off-highway versions of these truck-derivate engines to customers in the construction, industrial and agricultural markets.
MIPS comprises Marine, Nuclear & Energy and Power Systems (RRPS). On May 6, 2014 Rolls-Royce announced it had signed an agreement to sell its Energy gas turbine and compressor business to Siemens for a £785 million cash consideration. On completion, expected before the end of December 2014, Rolls-Royce will receive a further £200 million for a 25 year licensing agreement.Edit Module